America is planning more AI datacenters than its chip supply can fill Satellite imagery suggests US datacenter deployment is accelerating, but not fast enough to meet some of the more exuberant forecasts for 2028. Meanwhile, advanced chip packaging is emerging as another constraint on how quickly new AI capacity can come online. A report from investment bank Jefferies says server farm construction …
> What can break the economics, Gossett argued, is unpredictable five-minute curtailment under the Texas grid operator's Security-Constrained Economic Dispatch system for Provisional Controllable Load Resources.
Break the economics?? The economics are already well broken. There is not enough energy supply to go around, and the demand for this massive AI expansion just doesn't exist!
It's the economics of borrowing money and setting fire to it.
"It's the economics of borrowing money and setting fire to it."
There are still people that made loads right before the dotcom bust that are itching for another go.
There's no need for success stories short of those getting in and out at the best time. AI seems to be perfect for this. The companies don't seem to have any potential to break even and live for decades, but they are getting massive stock price rises which lets people bet the curve rather than the long term average.
I'll keep my investments in companies that expect to be around for the long term.
I've repeated this many times, the point of the data center projects is to drive up the price of personal computing to extinction. They may build the data center, but it'll be empty or unpowered. It's a facade for their artificial scarcity con. All this is to force all users to back to mainframe subscription services for computing. You'll pay rent and they'll control what you're allowed to do. You will not be (fiscally) allowed to own a computer more powerful than a Chromebook.
Patrick Boyle is starting his own AI venture.
He also does a good job explaining how these companies are keeping the chips off the books as "work in progress/construction in progress". The companies are buying chips to have on hand should they ever finish their facilities and get hooked up to a power source. A big issue is those chips are going obsolete at an accelerating pace to the point where they are financially useless in less than a year. Something faster and much more efficient is the current state of the art by the time they could be used.
Every trick in the book plus a load of new ones are being used in AI to game the system. My advice is to stock up on canned food, rice, flour and solar panels.
